Dec 31, 2022

DXP Q4 2022 Earnings Report

DXP Enterprises reported strong fourth quarter and fiscal year 2022 results, with sales growth and improved profitability.

Key Takeaways

DXP Enterprises reported a strong Q4 2022, with sales up 38.6% to $406.3 million and earnings per diluted share at $0.37, or $0.50 excluding one-time charges. Adjusted EBITDA increased to $31.6 million, representing 7.8% of sales. Fiscal year 2022 also saw significant growth, with sales reaching $1.5 billion and diluted EPS at $2.47.

Sales grew 38.6% to $406.3 million in the fourth quarter.

Earnings per diluted share for the fourth quarter was $0.37, or $0.50 excluding one-time charges.

Adjusted EBITDA for the fourth quarter of 2022 was $31.6 million, 7.8% of sales.

Fiscal year 2022 sales increased 32.9% to $1.5 billion.

Total Revenue
$406M
Previous year: $293M
+38.6%
EPS
$0.5
Previous year: $0.05
+900.0%
Adjusted EBITDA
$31.6M
Previous year: $14.8M
+114.1%
Gross Profit
$111M
Previous year: $84.7M
+31.4%
Cash and Equivalents
$46M
Previous year: $49M
-6.0%
Free Cash Flow
$2.15M
Previous year: $11.6M
-81.5%
Total Assets
$1.04B
Previous year: $906M
+14.5%

DXP

DXP

DXP Revenue by Segment

Forward Guidance

As DXP enters fiscal 2023, they anticipate volatility and uncertainty leveling out. They express high confidence in their operating teams and flexible business model, focusing on controllable factors and positioning the company for continued growth through investments in automation and modernization.

Positive Outlook

  • High confidence in operating teams.
  • Flexible business model.
  • Focus on controllable factors.
  • Positioning for continued growth.
  • Investments in automation and modernization.

Challenges Ahead

  • Volatility.
  • Uncertainty leveling.
  • Sales per business day in January and February were $5.7 million and $5.9 million per day, respectively.
  • Navigating the current environment.
  • Near-term market dynamics.

Revenue & Expenses

Visualization of income flow from segment revenue to net income